Business Appraisal Florida

We do. However, it doesn't need to be a full-blown certified valuation unless your are an ESOP or it is for the courts or the IRS. We have a Value Plan that will get you a fair number for state planning and similar needs.

You can, but it is a very rough number at the very best. For example, we have seen businesses in the same industry with the same sales per year of $2,000,000. One nets $500,000 and the other only $100,000. Many industry rough rules of thumb are only based on sales. That would not be fair to the company with five times the profit.

Think of non-physical assets such as franchises, trademarks, patents, copyrights, goodwill, equities, mineral rights, securities, and contracts (as distinguished from physical assets) that grant rights and privileges and have value for the owner. We value intangible assets quite often.

You should look for a few critical points: 1. Do they know your industry and have they valued many businesses similar to yours 2. Do they have the proper credentials like CVA, ASA or ABV 3. Do they take the time to understand the reason for the business valuation and who the audience will be

If you mean what level of valuation or its complexity, then it depends on your audience. If you just want to know the value of your business for internal planning that is not as complex as a business valuation for the courts or IRS.

Yes, if disaster hits your business, you will need to know the losses and damages you suffered for insurance and government purposes.

Yes, you definately do. The IRS will want to know about this transaction and that fair value was assigned and it was at arms length.

Every industry has ancedotal value benchmarks. For example medical practices are worth 2 times cash flow or a plumber is worth 1.3 times yearly sales. These are dangerous rough guesstimates at best. You should get a true valuation of your business.

We do help with exit strategies. We can value your company, arrange financing, do the tax minimization analysis, and also do targeted buyer searches.

Your valuation professional with have court or IRS recognized designations like ASA, CVA or ABVA. You can confirm their credentials are still current by going to the granting institutes website.

Yes you do. Think of it this way. You buy a Lexus for $100,000 and sell it to me for a $1. You are a nice guy. You sell it to your son for a $1 and the IRS wants their gift tax on $99,999. To keep the family transaction arms-length, you need an unbiased third party business valuation.

We appraisal or value all types of businesses. From pre-revenue startups to main street retailers. We have valued companies that were worth $100,000 to ones worth $100 million.

We typically value your business using 4-6 different valuation methods. Then we take those numbers and decide which is the best reflection of the reality of your type of business, audience, and situation.

In a typical business valuation, we will use these six different valuation methods: 1 Adjusted Tangible Net Worth 2 Capitalization of Earnings 3 Capitalization of Dividend Capacity 4 Discounted Future Earnings 5 Discounted Cash Flow 6 Capitalization of Gross Revenues We will then review the methods and numbers and select which one(s) are most appropriate for your situation.

Some of the methods we use to value your company include: Adjusted Tangible Net Worth Capitalization of Earnings Capitalization of Dividend Capacity Discounted Future Earnings Discounted Cash Flow Capitalization of Gross Revenues Definitions of all the above methods can be found on our website.

Believable and timely books and records are job #1. In life, you get one chance at a good first impression. If you can't believe your numbers, what other hidden defects in your business are there? Prepare your business for the valuation like you are preparing a loan packet for your banker. Aim to impress so you stand out versus the multitude of poorly ran businesses.

409A valuations are most commonly performed to assist companies with setting the strike price for grants of employee stock options. This is in order to satisfy the Internal Revenue Code (IRC) Section 409A, which imposes severe penalties for compensation that is issued at any value other than the fair market value as of the grant date.

If your company is preparing for an ownership transition, it is best to know the company's fair market value before hand.

A business evaluation is a term used most often by management consultants to describe the process of assessing a whole business enterprise and its operational effectiveness. People and departments are often evaluated yearly in companies. A business valuation is the measure of a companies market value for sale, the courts, the IRS and any type of business ownership event calling for a valuation of a companies market value.

Yes, we vaule both start-ups and pre-revenue companies many times for equity raises and employee stock vesting purposes.

No, we value companies in all 50 states.

We can have the first draft of your business valuation in 5-10 working days. Subsequent drafts after review and revisions can take only 1-2 business days.

Just as the name suggests it answers the question does the value of your business make sense in the real world? For example purposes, you engage a business appraisal company to appraise your business and the resulting value is $2,000,000 and the average cash flow of your business is $475,000. So here is where we compare this to real-life: Should someone were to purchase your business for the appraised value of $2,000,000, they would probably use borrowed money. If they put 20% down ($400,000) and financed the balance at 7 years at 6.5 interest, their payments would be $285,000 per year of principal and interest. Their lender wants approximately 1.25 times coverage on that amount which equals $356,000. So after debt coverage, that would leave the buyer $119,000 or so for their salary and capital expenditure. Does this seem like a reasonable risk/reward to the buyer as their return on the down payment is 47.5% and on their total investment ($400,000) 9.5% after debt coverage.

Fair Market Value is the price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arms length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.

Hopefully you are building you business to fund your retirement or transfer it your kids. Both require a third party business valuation so you can know the true value of your company. Other less pleasant, but important reasons include partnership disputes and divorce. You also might be taking on additional partners or doing an equity raise. The data you supply are three years of tax returns and YTD financials, among other items. The complete list can be found on our website.

A business valuation tells you what your business is worth at a certain point in time, and its value to a certain audience. If you are selling you company to your employees we might use one group of methods. If it is for litigation or a break-up, we might use other valuation methods. If you are trying to raise capital, another valuation methodology might be used.